How to get a dealer license in Maryland

A person may not conduct the business of a dealer unless licensed by the MVA (Transportation Article § 15-302). A dealer includes anyone in the business of buying, selling or exchanging vehicles, including a person who offers to sell three or more vehicles bought for resale in any 12-month period. Offering three or more vehicles in 12 months creates a presumption that they were bought for resale, which the owner must disprove (§ 15-101). People who sell vehicles they used for personal or business purposes, and who are not in the business of selling vehicles, are excluded.

• Used vehicle dealer: Selling or offering used vehicles, buying vehicles to resell for profit, displaying used vehicles for sale, or advertising as a used vehicle dealer, at a lot, office or other approved location.
• Wholesale dealer: Buying vehicles for resale and selling only to licensed dealers and auctions, never to the public. No lot is required, and a qualifying home office is allowed.
• New vehicle dealer: Selling or displaying new motor vehicles, or acting as a dealer for a manufacturer. Requires a franchise from the manufacturer or an authorized distributor.
• Motorcycle dealer: Buying, selling, exchanging, offering or displaying motorcycles for sale as a business.
• Trailer dealer: Buying, selling or exchanging trailers for profit, offering trailers to the public, or advertising as a trailer dealer.
• Emergency vehicle dealer: Buying, selling, leasing or otherwise dealing in police, fire, ambulance and other emergency vehicles.
• Automotive dismantler and recycler (ADR) or scrap processor: Dismantling vehicles for parts or scrap metal (ADR), or crushing, shredding or processing vehicles for scrap metal (scrap processor).
• Manufacturer or distributor: Manufacturing motor vehicles, distributing or selling new motor vehicles to licensed dealers, or representing or controlling the distribution of a line-make. Requires continuous surety bond coverage.

Surety bond. The used dealer bond depends on used vehicle sales in the preceding license year: $15,000 for 1 to 250 vehicles, $25,000 for 251 to 500, $35,000 for 501 to 1,000, $50,000 for 1,001 to 2,500, and $150,000 for more than 2,500 (Transportation Article § 15-308). New applicants are bonded on estimated first-year sales, with a $15,000 minimum for used dealers. Wholesalers use the same schedule. New vehicle dealers need $50,000 to $300,000. The bond must come from a surety licensed in Maryland, use Form CS-067A, name the dealership and all owners exactly as on the application, and run with the license. The surety must give the MVA 45 days' notice before cancelling.

Insurance. You must submit a Certificate of Liability Insurance, with the MVA listed as certificate holder, to use interchangeable dealer plates. You also need proof of workers' compensation insurance if you have employees, or an exemption certificate. Dealers who sell mechanical repair contracts or extended warranties must have a reimbursement insurance policy. We found no minimum liability limits in the MVA packet.

Place of business. The dealership must face, adjoin and be fully visible from an improved public street or highway that has a name or number. It needs space to safely display at least 10 vehicles plus customer parking, full lighting, a surfaced display and parking area, posted business hours, and permanent signs readable from the street that identify the business and direct customers to the office (COMAR 11.12.01.03). The office must be in a substantial building at the fixed location, big enough for customers, with a desk and chairs, a secure area for State property, and electricity, lighting, heat and phone service in the dealership's name. You must be open to the public during posted hours, hold a current trader's license for each location, and keep a contract with an electronic registration and titling (ERT) provider (COMAR 11.12.01.04). Only one license per vehicle type is allowed at a location. Local zoning must approve the site on Form CS-053. If you have no repair facility on site, you need a repair contract with a facility within 5 miles (Form CS-125). An MVA inspector inspects the site before you are licensed.

Background check. Every applicant, and anyone with a financial interest in the business, submits the MVA Criminal Record Request Form (CS-011) with a copy of their photo license, and the MVA runs a Maryland criminal background check at no charge for now. If you live in another state, or lived in one in the last year, you must also provide a criminal record check from that state. The application asks about criminal convictions and past license suspensions, revocations or refusals.

Pre-license education. Required. Approved courses and details.

1. Register your business and trade names with the State Department of Assessments and Taxation (SDAT), and get a trader's license from the Circuit Court where the business is located.
2. Secure a location that meets COMAR 11.12.01.03 and .04, including display space for 10 vehicles, customer parking, lighting, signs, posted hours and a proper office, and have local zoning sign the Zoning Approval Form (CS-053).
3. Set up a repair facility on site or sign a repair contract (CS-125) with one within 5 miles, and sign a contract with an ERT provider.
4. Buy a surety bond on Form CS-067A (at least $15,000 for a new used dealer, based on projected sales), plus liability insurance and workers' compensation or an exemption.
5. Complete the Application for Vehicle Dealer's License (CS-042), the Criminal Record Request Form (CS-011) and the Orientation Request (CS-303), and submit them online through the myMVA Business Portal.
6. Pass the site inspection by an MVA Compliance Inspector.
7. Attend the MVA Business Licensing Orientation.
8. After approval, pay the $900 license fee and $150 for each interchangeable dealer tag.

Official forms:

• Business Licensing Packet, Dealer's License (includes the application and required forms)
• Application for Vehicle Dealer's License (CS-042)
• Surety Bond of Vehicle or Trailer Dealer (CS-067A)
• Zoning Approval Form (CS-053)
• Automotive Repair Facility Contract (CS-125)
• MVA Criminal Record Request Form (CS-011)
• Business Licensing Orientation Request (CS-303)

Yes, with a wholesale dealer license. The MVA says wholesalers need an office with a desk, chair and locking file cabinet, which can be a home office not reached through living quarters, and no lot is required. Wholesalers may sell only to dealers and auctions, never to the public.

Dealer-only auctions require a dealer license, and Maryland wholesale dealers may conduct licensed business at vehicle auctions. AuctionACCESS (auctionaccess.com) restricts membership to licensed, credentialed vehicle dealers and their authorized representatives.

Dealer licenses run for 3 years (COMAR 11.12.01.02). The MVA posts a renewal notice in the Business Portal 60 days before expiration, and you must submit the renewal there at least 15 working days before the license expires, then pay the fee when notified. The Comptroller must confirm your state taxes are paid before renewal. If you don't request renewal before expiration, the MVA assumes you are going out of business, and 30 days after expiration the account can no longer be renewed. The bond continues across renewal periods.

This is general information, not legal advice. Rules and fees change, so confirm the details with the Maryland Motor Vehicle Administration (MVA), Business Licensing and Compliance Division before you apply. Last verified October 20, 2026.

Planning the business side too? Read how to start a car dealership. Used cars you offer for sale need an FTC Buyers Guide in the window. Selling your own car instead? See how to sell a car in Maryland.